U.S. natural gas futures jump 14% !
I wonder how much is leaving the country in Natural Gas ships now? Yep Biden is taking care of everybody else in Europe but not Us! The big squeeze through the bottleneck will take years to subside for prices and more inflation in the meantime will increase substantially.
Texas is going dark soon this summer they are saying.
serf
July 7 (Reuters) - U.S. natural gas futures jumped about 14% on Thursday to their highest in a week, supported by a much smaller-than-expected storage build last week as power generators burned lots of gas to keep air conditioners humming during an extreme heat wave.
Even before the government released the storage report, prices were already up about 5% because last week's heat wave was still scorching much of the country. Power demand in Texas has kept breaking all-time highs, and gas output has dropped in recent days.
Financial times article below excerpt only below. no link.
The world’s largest gas traders are scrambling to secure liquefied natural gas tankers ahead of winter after sanctions on Russia following its invasion of Ukraine triggered a reshaping of global energy flows. LNG shipowners and brokers say an unusually early annual rush is under way for the likes of the UK’s Shell, France’s TotalEnergies and China’s Unipec to secure enough shipping capacity to transport the superchilled fuel during the peak winter demand season. Rates to charter an LNG tanker for a year are trading near their highest level in a decade at $120,000 per day, up more than 50 per cent on a year ago, according to Clarksons Platou Securities.
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Combine that with the strengthened dollar that is up 12% and the buyers of U.S. natural gas will be hurting. It is the first time in 20 years that the dollar is about the same value as the Euro and gaining value against most of the other major currencies. In other words, it will take more of their money to buy LNG that is sold in dollars. It'll suck for us too, but not as bad as it will affect other countries. Bob
If the electrical grid goes down here in Texas it will cause a big problem for Texas Republicans .Abbott is losing votes to The Democrats already and they are coming in from Blue states in hundreds of thousands to live and vote now.
If dissatisfied undecided votes think the other side of the coin can deliver they will flip to Beto and could care less about anything else The Lefist in their party will do later as long as they are getting electrical power. Plus I bet most don't care about those silly 2nd amendment rights we enjoy here especially in Big Minority cities.
serf
??? Kind of a left turn there Serf. Not sure where LNG futures have anything to do with the Texas grid going down. The key to Abbott staying in office will be the Latino vote. Fortunately, they seem to be drifting right and that will help. Beto, the professional loser, is still down 5 - 8 pts in all the polling and will probably say something really stupid soon to increase Abbott's lead. Just in case, you better get all your friends out to vote and convince the 3rd party voters to switch to Abbott instead of wasting their vote. Good luck. Bob
When a commodity like N.G is used in our so called economic war with Russia and coal is the next best thing for Germany now then no those N.G. ships are very important for our NATO forces. A lot of our diesel and oil is going over there to support The E.U. and Biden is even shipping oil to China now!
I think fertilizer is made from N.G. and our feed stocks of it are dwindling because of filling the gap to make Fertilizer Most of The Public here oblivious of just how dire it can and will be in this scenario with The Ukraine.Russia.China and NATO really could become.
We the people here are going to suffer for it and if The war grows over there with NATO involved then we will be suffering much much more. Even The November election Chaos here could be a factor too.
serf
Urea fertilizer together with natural gas based electricity is today recognized as the cornerstone of the country's food security and political stability.
. Even though the power sector has a connected gas load of about 18.4 Mm3/day, all energy demand projections consider the fertilizer load an equally important category, and this is the reason why the fertilizer industry is considered to be a separate sector. The demand for natural gas by the fertilizer sector in the next two decades will, however, not increase significantly. Even if the country needs to produce an additional 1 million t of urea, the gas requirement would be an additional 1.42 Mm3 if plants such as NGFF, UFFL and PUFF are shut down. The fertilizer sector based on natural gas has provided the necessary life support for the development and growth of the gas industry since the first discovery of natural gas in the country
Me think Texans are intelligent enough to figure out Biden is problem and Beto is self promoting buffoon that would make things much worse.
@chiefr yes sir must of us are I believe... although I was not happy how Abbott initially dealt with the virus, he finally came around and he's got my vote since the alternative would be much worse...